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India scores high on future cotton production
01
May '08
The International Cotton Advisory Committee (ICAC) is anticipating that for the new season beginning in August, India will retain its position as the second largest producer, user and exporter of cotton preceded by China.

During the season 2006-07, India superseded US to get hold of the second rank since the latter is gradually shifting its cultivation policy to growing other crops like corn. Even in other countries the focus of agricultural production is switching over to crops like soybeans and wheat.

Cotton growing countries therefore pose no threat to India which has so far produced 4.74 million tons of cotton in the present season compared to 4.7 million tons cultivated by US.

For the upcoming season, India is likely to touch 5.6 million tons while US would see a further drop to 3.19 million tons.

On the other hand, China will continue to be at the first position with regard to production, consumption as well as imports. In spite of a decline of over 100,000 tons in cotton production, Beijing is expected to produce 7.62 million tons this season against 7.72 recorded last year.

This drop in China's cotton crop has led to acceleration in the exports made by other countries. Keeping with this trend, world cotton export is likely to rise by 10 percent to reach 9.1 million tons against 8.2 million tons registered last season.

Another prediction made by ICAC asserts that cotton prices in the international market would go up because of an expected drop in the world's stocks-to-mill use ratio.


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